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Why Is Allogene Therapeutics (ALLO) Down 19.4% Since Last Earnings Report?

A month has gone by since the last earnings report for Allogene Therapeutics (ALLO). Shares have lost about 19.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Allogene Therapeutics due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Reports Narrower-Than-Expected Loss in Q4

Allogene incurred a loss of 66 cents per share in fourth-quarter 2022, narrower than the Zacks Consensus Estimate and our model estimate of a loss of 71 cents and 75 cents, respectively. In the year-ago quarter, the company had reported a loss of 54 cents.

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ALLO recorded revenues of $0.05 million during the quarter, in line with the Zacks Consensus Estimate. Revenues were flat year over year.

Quarter in Detail

Research & development (R&D) expenses were $75.4 million, up 39.7% from the year-ago quarter’s level.

General and administrative (G&A) expenses rose 5.2% year over year to $21.0 million.

Allogene had $576.5 million of cash, cash equivalents and investments as of Dec 31, 2022, compared with $637.3 million as of Sep 30, 2022.

2023 Guidance

Allogene anticipates operating expenses for the full year to be approximately $350 million.

Cash burn for 2023 is expected to be approximately $250 million. Management expects the cash runway to be sufficient to fund operations into 2025.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 14.95% due to these changes.

VGM Scores

Currently, Allogene Therapeutics has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Allogene Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Allogene Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Alnylam Pharmaceuticals (ALNY), has gained 0.3% over the past month. More than a month has passed since the company reported results for the quarter ended December 2022.

Alnylam reported revenues of $335.04 million in the last reported quarter, representing a year-over-year change of +29.6%. EPS of -$1.68 for the same period compares with -$2.16 a year ago.

Alnylam is expected to post a loss of $1.96 per share for the current quarter, representing a year-over-year change of +2%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.5%.

Alnylam has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report

Alnylam Pharmaceuticals, Inc. (ALNY) : Free Stock Analysis Report

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